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DOL Secretary Reiterates Focus on Erroneous Wage & Hour Reporting

Might be a good time to confirm that all of your payroll calculations and processes are buttoned-up and accurate!

In remarks today, Secretary Solis reiterated the DOL’s focus on ferreting out erroneous wage and hour reporting:

After being sworn in, I added 350 new wage and hour investigators to help ensure workers are paid properly for the work they’ve already done.

. . . .

At the Labor Department, we’ve focused more of our Wage & Hour cases on what we call enterprise-wide enforcement. If an employer is violating minimum wage laws in one workplace, we think it’s likely they’re engaging in the same practice in other company locations. So we’re seeking injunctions to ensure that an employer complies with the law across all of its operations, and we’re seeking back wages across all of a company’s workplaces.

I’ll be blunt: If you think being fined for minimum-wage violations is just the “cost of doing business,” you’re going to have problems with my Department.

It’s immoral and illegal to seek a competitive advantage by paying workers less than the minimum wage. It’s immoral and illegal to cheat your workers out of overtime pay. This depresses wages for all American workers. Not many people know that the Department of Labor is the second-largest enforcement agency in the federal government. Only the DOJ is bigger.

. . . .

For companies that do at least $10,000 of business with the federal government, DOL has jurisdiction to enforce civil rights laws on behalf of their workforce. This includes pay discrimination. When DOL seeks a remedy for pay discrimination, we automatically seek back wages for all affected employees at a company. We feel this is an important way to level the playing field for pay disparities affecting women. My Office of Federal Contract Compliance Programs has shifted its enforcement priorities. Last year, 14 percent of their investigations involved compensation cases. This year, that number will be between 20 and 40 percent. [Emphasis added.]

2 thoughts on “DOL Secretary Reiterates Focus on Erroneous Wage & Hour Reporting

  1. “It’s immoral and illegal to seek a competitive advantage by paying workers less than the minimum wage. It’s immoral and illegal to cheat your workers out of overtime pay. This depresses wages for all American workers.”

    “Always treat your employees exactly as you want them to treat your best customers.” Stephen Covey

  2. Great quotes David!

    As for auditing payroll processes . . . processes that are running correctly can break down (often for no readily apparent reason) so its always a good idea to audit them on a routine schedule to make sure they are still performing as you think they are. Its the right thing to do for your employees and the best way to protect yourself from a penalty.

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